Shares of Netflix Inc. (NFLX: Quote) surged about 33 percent in extended trade Wednesday, after the company reported a surprise profit for the fourth quarter, due largely to strong growth in its subscriber base. The company had earlier forecast a loss for the fourth quarter.
The online video service provider also detailed guidance for the first quarter, which is expected to easily beat current Street expectations.
Netflix reported a profit for the quarter that was down from last year, hurt mainly by higher costs and increased international losses reflecting the launch of its service in the Nordic. Netflix added 2.05 million domestic subscribers taking the total number of subscribers to 27.15 million at the end of the quarter. The company had earlier forecast the addition of about 1.3 million to 2 million domestic subscribers. The sale of smart TVs and tablets in large numbers during the holiday season should have helped Netflix in adding more subscribers. The company added 1.81 international streaming customers, ending the quarter with subscriptions totaling 6.12 million.
Revenues for the quarter grew to $945.2 million from $875.6 million last year. Thirty analysts had a consensus revenue estimate of $934.12 million for the quarter.
Los Gatos, California-based Netflix’s fourth-quarter profit was $7.90 million or $0.13 per share, down from $35.22 million or $0.64 per share last year.
Analysts polled by Thomson Reuters expected a loss of $0.13 per share for the quarter. Analysts’ estimates typically exclude special items.
Looking forward to the first-quarter, the company expects earnings of breakeven to $0.23 per share and revenues of $1.00 billion to $1.03 billion. Analysts currently expect a loss of $0.07 per share on revenues of $969.36 million for the quarter.
NFLX closed Wednesday’s trading at $103.26, up 5.57%, on the Nasdaq. In the after-hours trade, the stock gained $33.64 or 32.58%.
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by RTT Staff Writer
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